Scott Morrison has called Anthony Albanese a ‘loose unit’ on the economy after he shocked Australia by supporting a massive 5.1 per cent increase in the minimum wage in off-the-cuff comments.
During a press conference on Tuesday, Mr Albanese said wages should ‘absolutely’ keep up with the 5.1 per cent headline inflation rate.
The comment was immediately slammed by economists and business groups who fear such a big wage rise will stoke inflation and push household bills up even further.
This would drive the Reserve Bank to raise interest rates faster than it would otherwise, raising mortgage payments for millions of people.
It may also increase unemployment by making it prohibitively expensive for enterprises to hire as many people.
Mr Morrison, speaking in Newcastle on Wednesday, attacked his opponent’s remarks and claimed he was unable to lead the country.
‘Mr Albanese shown yesterday that he is a real loose cannon when it comes to this. He just bursts out laughing,’ he said.
‘It is like he just unzips his head and lets everything fall on the table.’
Mr Morrison refused to say what level of wage increase he favours – instead insisting the independent Fair Work Commission be left to decide without political pressure.